Large fluctuations incryptocurrencyprices are common, which makes them a highly speculative investment.
What kind of people are willing to take the risk, and what motivates them?
We conducted a surveyto find out.
The dark tetrad
In psychology, the dark tetrad refers to a group of four personality traits.
These are Machiavellianism, narcissism, and psychopathy (together known as the dark triad), plus sadism.
They are called dark because of their evil qualities: extreme selfishness and taking advantage of others without empathy.
The dark tetrad are also often related to risk-taking behaviors.
The appeal of cryptocurrency
We identified two main areas of appeal.
Second, cryptocurrencies are not issued or backed by governments like traditional or fiat currencies.
This makes them attractive to people who distrust government.What are the personalities of crypto buyers?
Of our participants, 26% reported they own crypto and 64% showed interest in crypto investing.
We measured their dark tetrad traits using standard psychological tests.
Why do people want to buy crypto?
Beyond the desire to build wealth, our research shows dark personality traits also drive crypto buying.
Machiavellianismis named after the Italian political philosophy ofNiccolo Machiavelli.
People who rate highly on this trait are good at deception and interpersonal manipulation.
Machiavellians take a calculated approach to achieving goals, and avoid impulsive decisions.
They are less likely to engage inproblem gambling.
Machiavellians also tend to believe strongly in government conspiracies.
We found Machiavellians like crypto primarily because they distrust politicians and government agencies.
Many crypto supporters believe governments are corrupt, andcrypto avoids government corruption.
Narcissists are overconfident and are more willing to do things likemake risky investments in the stock marketand gamble.
Narcissists tend to focus on the positive side of life.
Impulsive psychopaths like crypto
Psychopathy is a callous, impulsive antisocial personality trait.
The reckless nature of psychopaths makes them more resistant to stress and anxiety.
As a result, psychopaths likestimulation-seekingand risk-taking.
They are prone to gambling and gambling addiction.
How is sadism involved?
Everydaysadismrelates to a personality enjoying anothers suffering.
Sadists often display aggression and cruel behaviours.
For example, sadists troll others on the Internet for enjoyment.
At first glance, buying crypto is unlikely to harm others.
However, we found sadists like crypto because they do not want to miss out on investment rewards either.
We are not suggesting that everyone interested in crypto displays dark tetrad traits.
We studied only a subset of people interested in crypto who do have these traits.
If you happen to be a Bitcoin or other crypto holder, you may or may not exhibit them.
